Takeovers

Takeovers in
listed companies in India are technically governed
by SEBI (Substantial Acquisition of Shares and
Takeover) Regulations 1997. The purpose of a
Takeover is to gain management control of the Target
Company. Plans of Horizontal Diversification,
Elimination of Competition, Backward and Forward
Integration are the motives behind any Takeover bid.
The Taking-over Company buys the shares of the
Target Company by making an offer to the existing
shareholders at a specified price.

In takeover offers, a Merchant Banker
has to be appointed to manage the acquisition of
shares. The process starts with the Acquirer
executing an MOU with us. The Due Diligence exercise
is carried out in accordance with the relevant SEBI
Rules/Regulations/Guidelines and the Public
Announcement and offer document is prepared and
submitted to SEBI for their observation. Our Team at
D&A also undertakes preparation of the legal
documentation connected with Takeover.